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Lee to Portland talks are dead

"Honestly, I don't see them moving Lee this season. Over the summer maybe, but not now," a league source close to the situation in New York told HOOPSWORLD.
"Lee is a key piece (for the Knicks). Every team in the league asks (Knicks General Manager) Donnie Walsh about him. A sure sign they should hold onto him."
The "talks" between Portland and New York might be ongoing, but it's safe to say they are going nowhere real fast.

Also, they say Walsh won't trade Lee unless they get a star in return:

If Walsh opts to trade the fourth-year pro, the criteria will be steep for all teams involved. That is for certain.
"He'd (Walsh) only do it if he got an absolute stud in return or could package him with Jared Jefferies or Eddy Curry. Even in a deal like that they'd need a star in return," the source continued.
The Jeffries-Curry situation would be shaky at best either way for the Blazers - two contracts left that extend past 2010. Even still, who wouldn't be interested in acquiring Lee?